Aladdin FAQs

As a central processing system for investment management, Aladdin integrates and connects functions that help manage money. From portfolio management and trading to compliance, operations, and risk oversight, Aladdin brings together people, processes, and systems to help support a seamless investment process. Aladdin allows teams across investments, trading, operations, administration, risk, compliance, and corporate oversight to use a consistent process and share the same data. Aladdin creates value by helping to enable informed decision-making, effective risk management, and efficient trading.

Aladdin Risk is a package of risk and portfolio analytic tools that is part of the full Aladdin platform but can also be purchased on a standalone basis. These tools help investment professionals gain an understanding of portfolio risk and performance across asset classes, resulting in more informed investment decisions. By combining sophisticated risk analytics, highly scalable processing capabilities, and subject matter expertise, Aladdin Risk provides a comprehensive solution while helping risk managers, portfolio managers, compliance officers, executives, and boards meet their risk and reporting needs.

Aladdin and its risk analytics are relied upon by over 100 institutions to oversee over $14 trillion in assets under management (as of December 31st, 2013). Clients include insurers, pensions, corporations, asset managers, banks, and official institutions.

Firms looking solely for risk and return analytics can utilize the Aladdin Risk offering, which provides many of the same analytic tools as the full Aladdin platform, without the order management, trading and operations capabilities. Additionally, clients can couple Aladdin Risk with BlackRock’s other risk consulting services such as LDI management or outsourced Chief Investment Office (CIO) services through BlackRock’s Client Solutions team.

Aladdin is a multi-asset class platform which supports risk analytics and the full investment process across equity, fixed income, FX, bank loans, and derivatives. Aladdin also supports risk analysis for alternative investments such as real estate, commodities, and private equity.

BlackRock entered into an alliance with MarketAxess in July 2013 to create an open trading solution for US corporate bonds (meaning buy side firms can trade directly with each other rather than only through dealers). ATN is the gateway that connects Aladdin to the marketplace to access fragmented liquidity from a variety of sources, and thus Aladdin users can benefit from increased liquidity and best execution through automated integration with the marketplace.

This material is provided for informational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are subject to change at any time without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations.

This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of yields or returns, and proposed or expected portfolio composition. Moreover, any historical performance information of other investment vehicles or composite accounts managed by BlackRock, Inc. and/or its subsidiaries (together, “BlackRock”) included in this material is presented by way of example only. No representation is made that any performance presented will be achieved, or that every assumption made in achieving, calculating or presenting either the forward-looking information or the historical performance information herein has been considered or stated in preparing this material. Any changes to assumptions that may have been made in preparing this material could have a material impact on the investment returns that are presented herein by way of example. Past performance is no guarantee of future results.

The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy.

FOR INSTITUTIONAL, FINANCIAL PROFESSIONAL, AND PERMITTED CLIENTS USE ONLY. THIS MATERIAL IS NOT TO BE REPRODUCED OR DISTRIBUTED TO PERSONS OTHER THAN THE RECIPIENT.